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Which retailers were the Christmas winners and losers? | Which retailers were the Christmas winners and losers? |
(about 13 hours later) | |
Christmas sales results for retailers are rolling in and they are a mixed bag. Some retailers had a cracking Christmas, while for some, 2019 was a bit of a turkey. | Christmas sales results for retailers are rolling in and they are a mixed bag. Some retailers had a cracking Christmas, while for some, 2019 was a bit of a turkey. |
For November and December overall, total retail sales fell, according to industry body the British Retail Consortium (BRC) | For November and December overall, total retail sales fell, according to industry body the British Retail Consortium (BRC) |
But some retailers, including the discounters, were full of festive cheer. So, of the results in so far, who are the winners and losers? | But some retailers, including the discounters, were full of festive cheer. So, of the results in so far, who are the winners and losers? |
Who did well? | Who did well? |
Next lifted its profit forecast after better than expected sales over the Christmas trading period. The company's full-price sales rose by 5.2% from 27 October to 28 December, 1.1% ahead of its own expectations. | Next lifted its profit forecast after better than expected sales over the Christmas trading period. The company's full-price sales rose by 5.2% from 27 October to 28 December, 1.1% ahead of its own expectations. |
It said that colder weather in November might have helped its sales performance. | It said that colder weather in November might have helped its sales performance. |
Tesco boss Dave Lewis said the chain had "performed well" in a "subdued" UK market. Sales fell slightly for the UK'S biggest supermarket chain in the months that include the crucial Christmas period. | Tesco boss Dave Lewis said the chain had "performed well" in a "subdued" UK market. Sales fell slightly for the UK'S biggest supermarket chain in the months that include the crucial Christmas period. |
But stronger takings in the weeks just before Christmas helped bolster performance. | But stronger takings in the weeks just before Christmas helped bolster performance. |
Greggs did so well during 2019 that it decided to give thousands of staff a £300 bonus in January. | Greggs did so well during 2019 that it decided to give thousands of staff a £300 bonus in January. |
This success continued over the festive period, with chief executive Roger Whiteside saying the bakery chain had "delivered a strong finish to what has been an exceptional year". Sales at established stores rose 8.7% in the three months to 28 December. | This success continued over the festive period, with chief executive Roger Whiteside saying the bakery chain had "delivered a strong finish to what has been an exceptional year". Sales at established stores rose 8.7% in the three months to 28 December. |
Aldi was one of the discounters that had a strong Christmas. Discounters have been steadily eating the market share of more established supermarkets, and this trend continued over the festive period. | Aldi was one of the discounters that had a strong Christmas. Discounters have been steadily eating the market share of more established supermarkets, and this trend continued over the festive period. |
Aldi's total UK sales in the four weeks to 24 December rose 7.9% from a year before, although it did not give a like-for-like comparison. It also sold 55 million mince pies. | Aldi's total UK sales in the four weeks to 24 December rose 7.9% from a year before, although it did not give a like-for-like comparison. It also sold 55 million mince pies. |
Lidl had the highest percentage increase in sales growth for bricks and mortar supermarkets over the same period, with its sales up 10.8%, according to the research firm Kantar. | Lidl had the highest percentage increase in sales growth for bricks and mortar supermarkets over the same period, with its sales up 10.8%, according to the research firm Kantar. |
Lidl and Aldi had their highest-ever combined Christmas market share of 13.7% - more than treble the figure in 2009. | Lidl and Aldi had their highest-ever combined Christmas market share of 13.7% - more than treble the figure in 2009. |
Oxfam said it saw its best festive period in eight years, with sales up 7% in the week before Christmas. The charity chain put it down to shoppers seeking out "ethical and second-hand products that protect the planet and raise money for the world's poorest people". Christmas cracker sales jumped 55%. | |
Who had a tough Christmas? | Who had a tough Christmas? |
John Lewis warned that its staff bonus may be in doubt as it reported Christmas sales at its department stores were down 2% on a like-for-like basis. | John Lewis warned that its staff bonus may be in doubt as it reported Christmas sales at its department stores were down 2% on a like-for-like basis. |
At the same time, the group's Waitrose division saw sales rise 0.4%, which chair Sir Charlie Mayfield described as "a good sales performance" in a "weak grocery market". In a surprise announcement, the partnership also said department chain managing director Paula Nickolds would step down in February. | At the same time, the group's Waitrose division saw sales rise 0.4%, which chair Sir Charlie Mayfield described as "a good sales performance" in a "weak grocery market". In a surprise announcement, the partnership also said department chain managing director Paula Nickolds would step down in February. |
Marks & Spencer said it had overestimated demand for tight-fitting men's clothing in the run-up to Christmas. | Marks & Spencer said it had overestimated demand for tight-fitting men's clothing in the run-up to Christmas. |
M&S boss Steve Rowe said "disappointing" issues, such as a surplus of men's skinny jeans, held the firm back from a stronger performance over the festive period. In what is a perennial problem for M&S, weak clothing sales were offset by higher food sales. | M&S boss Steve Rowe said "disappointing" issues, such as a surplus of men's skinny jeans, held the firm back from a stronger performance over the festive period. In what is a perennial problem for M&S, weak clothing sales were offset by higher food sales. |
Sainsbury's blamed lower Christmas sales on fewer people buying toys. Chief executive Mike Coupe said toy sales had fallen by 20% across the market in the last two years. | Sainsbury's blamed lower Christmas sales on fewer people buying toys. Chief executive Mike Coupe said toy sales had fallen by 20% across the market in the last two years. |
While grocery sales actually increased by 0.4%, poor sales in the division that includes Argos, owned by Sainsbury's, weighed on the company's overall performance. | While grocery sales actually increased by 0.4%, poor sales in the division that includes Argos, owned by Sainsbury's, weighed on the company's overall performance. |
Morrisons, meanwhile, said its sales fell over the Christmas period amid "challenging" trading conditions. | Morrisons, meanwhile, said its sales fell over the Christmas period amid "challenging" trading conditions. |
Richard Lim, chief executive of Retail Economics, said the results suggested that Morrisons had been "outmanoeuvred" by its competitors. | Richard Lim, chief executive of Retail Economics, said the results suggested that Morrisons had been "outmanoeuvred" by its competitors. |
"Shrinking sales demonstrate the fiercely competitive food sector," he added. | "Shrinking sales demonstrate the fiercely competitive food sector," he added. |
Did consumers tighten their belts? | Did consumers tighten their belts? |
According to the BRC, consumers were "both more cautious and more conscientious as they went about their Christmas shopping". | According to the BRC, consumers were "both more cautious and more conscientious as they went about their Christmas shopping". |
The timing of Black Friday, which was relatively late in 2019 and also in 2015, can eat into Christmas shopping, a BRC spokesman said. This is due to people combining Black Friday and Christmas shopping, he said. | The timing of Black Friday, which was relatively late in 2019 and also in 2015, can eat into Christmas shopping, a BRC spokesman said. This is due to people combining Black Friday and Christmas shopping, he said. |
Some analysts said that supermarkets also had a tough time due to consumers tightening their belts. | Some analysts said that supermarkets also had a tough time due to consumers tightening their belts. |
"There was no sign of the post-election rush many had hoped for in the final weeks before Christmas, with shoppers carefully watching their budgets," said Kantar's Fraser McKevitt. | "There was no sign of the post-election rush many had hoped for in the final weeks before Christmas, with shoppers carefully watching their budgets," said Kantar's Fraser McKevitt. |
Tesco's Mr Lewis said the UK market as a whole had "clearly been challenging". | Tesco's Mr Lewis said the UK market as a whole had "clearly been challenging". |
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